We always make sure that our graphic charts are easy to use. They can be technically analyzed easily and are readily available. In a way, that illuminates the road so clients know the correct direction to take. Let's first start by defining what graphic charts are: Serial drawings in a timeframe, and are defined by a number of other frames. The vertical axis in the drawing is a measure of price, while the horizontal axis represents the time.
There is a large number of special features on the graphs for use in conducting rigorous analysis. It is important for graphs to not have graphical inaccuracy, since deal makings are built according to their data. It must be emphasized that these graphs must be absolutely accurate.
When you inspect the charts, there are some factors that must be taken into consideration since these factors heavily influence the information that we get from the graphs. These factors include the currency rate table, and also the time frame for the drawing.
When we choose a timeframe that we will work on, it is important to know that each candle, bar, or point in front of us represents information concerning the movement of price within a specific range. If the timeframe is monthly, this means that the candle, tape, or point, is equal to the price movement within a month, and this applies to the weekly and daily frames, and so on.
You cannot choose the time frame without reason, because this framework needs to fit the strategy that you are basing your work on. To clarify that, we will be using a few simple and quick examples about when a trader works in accordance with the scalping strategy. This strategy calls for a small timeframe that lasts for anywhere from five minutes, to a half hour frame, which is contrary to the strategy that he is used in the longer trading strategy, called swings. This requires a larger framework and so on.
Price has a scale that is based on the vertical axis. There are two types that are determined either by calculation, or logarithmic method.
In the calculations, the distance between price points are equal, regardless of the price level, regardless of what the unit of measurement is. In the logarithmic way, the distances among price points are equal, but are shown as percentages.
There are three types of graphical charts: linear graphs, vertical graphs, or Japanese candles, these the most commonly used among traders.
These graphs are the main types of graphs used. The existing line links the prices to each other within the specified time frame. These graphs are important to the trader, because they give a general idea of what happened regarding price movements within the chosen time frame.
These are graphs are described as being trader-friendly since everyone out there works on them. There is an interesting saying that states that if you want to deliver a message through the graphs, you will not find better than the Japanese candles, where every candle has a name and a meaning. You must learn everything about Japanese candles in order to use them effectively.
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